Diebold Nixdorf hires advisers to seek a sale, sources say

Diebold Nixdorf, the ATM servicer in addition to software provider, has hired financial advisers to seek a sale, according to people familiar with the matter.

No deal is usually assured, in addition to talks with potential buyers aren’t advanced, said the people, who asked not to be identified because the discussions are private. Diebold hired Credit Suisse in addition to Evercore last week to help identify potential buyers, in addition to which’s too early to determine a cost for the company, said the people.

Diebold shares have been in a freefall since forecasting lower-than-expected EBITDA earlier which month in addition to revealing which could use cash on hand in addition to tap its revolving credit line to buy $0 million of Wincor Nixdorf shares, the German company Diebold bought in 2016.

Even though Diebold acquired Wincor two years ago, not all of Wincor’s shareholders tendered the offer. Diebold only held 77 percent of the outstanding shares by the end of July. Earlier which month, 13 percent of the remaining outstanding holders asked to be paid, amounting to about $255 million. Diebold paid $0 million in addition to will pay the remaining $95 million later which week, the company said in a statement released earlier Monday. Diebold will then own more than 0 percent of outstanding shares.

Diebold had access to $380 million in funds under its revolving credit facility at the end of the second quarter, D.A. Davidson’s Matt Summerville said in a note to clients.

“The company is usually in constructive in addition to productive discussions with its lenders regarding its future financial flexibility in addition to expects to reach a resolution from the near-term,” Diebold said from the statement Monday. “The company will disclose additional details in due course.”

Given the tight liquidity position, Diebold is usually looking for a buyer at which point in addition to is usually focusing on private equity firms in addition to NCR, said the people. Bain Capital may be interested if which has enough time to perform due diligence in addition to isn’t rushed by the liquidity dynamic, one of the people said. Bain in addition to Blackstone had discussed partnering on a deal for NCR, a peer in addition to rival of Diebold, in 2015. A spokesman for Bain declined to comment. A spokesman for NCR couldn’t immediately be reached for comment.

Diebold incorporates a market capitalization of less than $400 million after shares have fallen about 75 percent coming from $21.50 to less than $5 over the past 52 weeks. Diebold had annual revenue of $4.6 billion in 2017. The company has an enterprise value of just over $2 billion.

Gerrard Schmid took over as Diebold’s CEO in February.

A Diebold spokesman declined to comment on the sales process, although added, “As a global leader in our industry, we possess the scale in addition to capacity to evolve alongside the markets we serve in addition to continue to bring our customers innovative services in addition to solutions.”

Spokesmen for Credit Suisse in addition to Evercore declined to comment.